Leasing States land could solve housing situation

It just sits there with associated costs.

Proposal

The States of Guernsey do not sell that people-owned land but set up a leasehold system which rents that land for homes forever – not limited to 100 years as in the UK. Such leases remove the cost of land from the total home cost so the new home prices for young and wise-aged people drops. These leases are at a fair price per year and hence encourage the local builders as more young people will be able to afford the mortgage of the lower-priced capital cost. None of the land should be agricultural – no green fields – the poorest-quality land only.

The Guernsey people’s land-lease would be in perpetuity with yearly rent increases to exactly match inflation (up and down) year by year, hence giving the people (the States) a financial return forever from their current land ownership.

My initial thought, based upon zero knowledge, would be £2,000 per year for a plot size. I assume more experienced people than I will set that yearly price.

Who wins:

n Young people – the next generation. They have already lost out by the cancelling of tax-relief on mortgage interest.

n Wise-aged people who wish to downsize.

n Guernsey builders.

n The financial situation of the States as rent comes in as opposed to the current cost of dead land.

n Guernsey business because the younger generation can then afford to return to Guernsey after being trained or educated in the UK. This approach aids the long-term issue of not enough working young people to support the pensions of all islanders.

n Estate agents as the volume of property sales increases.

n It has been shown by Deputy Roffey that one of the main causes of poverty-in-work is the high prices of property and rent. This new land-lease programme would reduce property prices, rent and hence minimise poverty for lower-paid workers. This is a much better solution than taking cash from our taxes and giving it to lower-paid workers to pay high rents

Who loses:

n The golden generation – me: My generation had significant tax relief on mortgage interest but from now the price of our homes will fall. The house I own is a home, not an investment.

n Owners of fields, land and derelict greenhouses.

n Land and property speculators.

n Business organisations that see houses as a business.

On this Christmas; may good health be with all of us in the golden generation.

REX FERBRACHE,

Address supplied.